(The Canadian Press circulated the following story on March 21.)
NANAIMO, B.C. — The Vancouver Island Rail Corridor Foundation has struck a deal with Rail America that now gives the not-for-profit group 100 per cent control of the corridor, setting the stage to reinvigorate rail service on the island.
The foundation announced the agreement with Rail America on Tuesday, three weeks after a similar deal with CP Rail gave it control of the historic Esquimalt and Nanaimo railway line.
The agreement with Rail America turns over rights to the Nanaimo-to-Parksville and Parksville-to-Port Alberni stretches of the line to the foundation, a partnership set up in 2004 between local island governments and native bands along the corridor.
Foundation co-chairman Jack Peak said Rail America’s donation included continuing lease revenues, maintenance of right-of-way equipment, vehicles and various rail assets.
“(The foundation) now owns the full island rail corridor valued at over $370-million,” Mr. Peake said in a news release. “E&N Rail customers can rest assured service will continue without interruption.
“We can now turn our full attention to negotiating an agreement with a new rail operator. These negotiations are proceeding favourably.”
Mr. Peake said the agreements allow CP Rail and Rail America to concentrate on their core freight business.
Chief Judith Sayers of the Hupacasath First Nation in the Port Alberni area said rail service will help bring tourists to the region and increase activity at the port.
The foundation was set after rail enthusiasts worried the island’s rail corridor would be divided and sold off piecemeal.
Construction of the E&N Railway began in 1884 to ship coal and lumber from the island’s mines and forests to the port of Esquimalt, now a Victoria suburb, and to serve the naval base there. It was sold to CP Rail in 1905
At its peak, the line had 45 stations on the main line, eight on the Port Alberni line, and 36 stations on the Cowichan line. Today only about 25 stations remain, most unused and decaying.
CP Rail stopped passenger service to Port Alberni in 1953. VIA Rail took over operation of the E&N in 1979 but CP Rail owned the right-of-way, selling the east-west section to Rail America in 1998. Rail America bailed out in 2001 after its major forest-industry customer opted to ship production by truck.
Use of the main line has dwindled too and passenger service now involves one self-propelled car that runs daily between Esquimalt and Courtenay, mainly used by tourists.
The foundation’s principals envision a commuter service from Esquimalt to the growing communities north of Victoria.